SDA Requests Diamond SMEs Reduce Production

(IDEX Online News) – The Surat Diamond Association (SDA) has appealed to small and medium diamond unit owners to abstain from stocking rough diamonds and consider shuttering businesses during the summer vacation, according to a report in The Economic Times.

The SDA made the call as worries persist that over-production could stall the shoots of recovery that have been in evidence since the turn of the year. The Economic Times article said that since the financial crisis of 2008, the industry had shown steady growth, however, the 2015-2016 period had shown a 15-percent decline in exports.

Diamond unit owners shuttered their stores for several weeks ahead of the Diwali vacation and cut down on polished diamond production by almost 50 percent to reduce inventories. The length of the working day was also cut as demand for polished diamonds slackened.

The Gem and Jewelry Export Promotion Council has requested that diamond units refrain from restocking rough diamonds and observe a 15- to 20-day summer vacation.